Charts: U.S. Manufacturing Trends Q1 2024

The Institute for Supply Management is a leading not-for-profit global procurement organization. Founded in 1915, ISM’s 50,000 members from 100 countries manage about $1 trillion annually in corporate and government supply chain procurement.

The monthly “ISM Report On Manufacturing” is among the most reliable economic indicators for supply management professionals, economists, analysts, and government and business leaders.

The report includes the closely watched purchasing managers index — “Manufacturing PMI” — based on data compiled from purchasing and supply executives. Participants report activity in multiple categories, such as new orders, inventories, and production. Those indices are then combined to create the PMI. A PMI above 50 designates an overall expansion of the manufacturing economy, whereas below 50 is a contraction.

In March 2024, U.S. manufacturing activity expanded for the first time in 16 months, with ISM’s Manufacturing PMI at 50.30, up from 47.80 in February and 46.30 one year ago.

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ISM’s data also shows new U.S. manufacturing orders in February 2024 were $576.76 billion, up from $568.57 billion in January and $571.26 billion year over year — an increase of 1.44% and 0.96%, respectively.

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ISM’s March 2024 U.S. Employment Index for the manufacturing sector is 47.40, indicating a slower decline from 45.90 in February and 46.90 one year ago.